Industry body Assschom believes that the demonetisation drive is likely to push a lot of people towards digital wallets for the good. It said that the mobile wallet market is likely to reach Rs 30,000 crore by 2022.

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Assocham said, “M-wallet market is expected to grow at a compounded annual growth rate (CAGR) of 141% during the period between 2015-16 to 2021-22 and reach till Rs 300 billion or Rs 30,000 crore by the end of FY 2022 driven by growing usage of smartphones, robust mobile internet penetration, growth of e-commerce sector together with increasing disposable incomes.”

In FY16, Indian m-wallet market was around Rs 1.54 billion or Rs 154 crore. Besides, in FY16, total m-wallet transaction was 0.6 billion.

The study had categorised m-wallet market into three – money transfers from wallet to wallet, bank to wallet and vice versa accounting for 38% share, recharge and bill payments for mobile, DTH, landline, electricity and other such services holding 31% and the remaining share of 31% is captured by online shopping, hotel/travel/movie ticket reservations, online food order, payment of insurance premium, recharging metro rail card and others.

During FY16, the mobile wallet services contributed 21% share in mobile payment volume transactions. Looking at the growth trajectory, its share in total mobile payment volume is expected to increase to 79% by FY22, Assocham said. 

Assocham suggested, “The m-wallet companies must develop a common platform for their application to save money and time as this would ultimately result in reduction in cost and expansion in user base and hence revenue.”